Salary Compensation/Package (SG to HK)

[DimZ]

Hi everyone,

I've been trying to search for some information on compensation negotiation for a person moving from Singapore to Hong Kong, but am not able to locate much information.

I've been offered a job and will now be speaking to HK HR (tomorrow) on the compensation. It's for the same bank but may not be considered an internal transfer as I've been told that I will need to resign from my current job, and it will be a local package.

I like to know if there's a cost of living multiplier for the calculation of a comparable salary in Hong Kong? Would asking for 30% more of the Singapore salary be reasonable? What would be a reasonable % to ask for?

I've checked with some friends and they told me that I should be budgeting 20-30k for rental. I thought that's kinda high as I've found some decent looking apts online (on Hong Kong Island) for about 10-15k, for roughly 600sqft. I don't really want to spend too much of my salary on rental as I still got commitments in SG.

I've also been advised to negotiate for CPF instead of MFP(?). Is that even possible?

I will probably be asking for a one way ticket plus some allowance/reimbursement for shipping of some personal stuff (no furniture).

What else should I be asking for in the package? Or if you can point me to posts that have answers to the above would be good too.

Any advice will be greatly appreciated.

Thanks,

[PDLM]

I've also been advised to negotiate for CPF instead of MFP(?). Is that even possible?

There's no legal problem with it at the HK end - if you can show that contributions are being made to an overseas pension fund (such as CPF) then you are exempt from MPF. So it's just down to a commercial negotiation between you and the employer. Note though that CPF contributions will probably be taxable in Hong Kong whereas MPF would be tax-free.

HK$15K would get you a reasonable, smallish (5-600sq.ft) place on HK Island I think. But plenty of people spend lots more than that.

Negotiate for 4 weeks in a hotel or serviced apartment at the company's expense when you arrive so you have time to look around and find a place to rent that suits you.

[DimZ]

Hi PDLM,

Thanks for that information on CPF, will take tax portion into consideration as well in order to gauge if the compensation is reasonable. Yes, I will ask them for a mth's accommodation too.

I think 500-600sqft (preferably live-in area size, understand there's some ratio thing too) shld be sufficient for me. At least for the 1st year, even if I do get the occasional overseas visitors. Will probably looking around for something between HK$9-12K plus some basic furnishings if possible. My friend suggested keeping 20K as the floor, but I think I'll probably keep 15k as the ceiling. Guess will have a better idea when I get there.

[cookie09]

30% more than SG sounds a bit aggressive to me on a comparable basis. SG food/daily stuff is a bit cheaper, housing is cheaper, but taxes are a tad higher.

generally speaking though i think 15-20% more would give you a comparable package (but of course depends on live style and individual circumstances)

[DimZ]

30% more than SG sounds a bit aggressive to me on a comparable basis. SG food/daily stuff is a bit cheaper, housing is cheaper, but taxes are a tad higher.

generally speaking though i think 15-20% more would give you a comparable package (but of course depends on live style and individual circumstances)

Hi cookie,
My friend had suggested 20-30%, wasn't sure if that was reasonable thus trying to get some opinions.

But I guess shld always ask for a little bit more than what you want cos companies tend to negotiate down rt? But then again, don't really want to frighten them off either.

Thanks for the info.

[dreamer937]

30% more than SG sounds a bit aggressive to me on a comparable basis. SG food/daily stuff is a bit cheaper, housing is cheaper, but taxes are a tad higher.

generally speaking though i think 15-20% more would give you a comparable package (but of course depends on live style and individual circumstances)

Hi Cookie09,

How much more is SG tax compared to HK's? Thank you!

[PDLM]

It depends on how much you earn, whether you are married, have kids, etc etc - it isn't a simple comparison.

The Singapore tax calculator is here: How to calculate your tax (Individual Income Tax)

The HK tax calculator is here: Salaries Tax Computation

Remember also that there's a 7% Goods & Services tax on consumption in Singapore which doesn't exist in Hong Kong.

[cookie09]

pdlm says it all there. net-net my back-of-the-envelope guidance is always 25% in SG (18+7) vs 15% (straight) in HK

[PDLM]

But on the other hand, if you earn HK$30,000 per month and have a wife and two kids then you'll pay tax of just over HK$50 per month, and at $50,000/month your tax rate would be less than 6%. It's only 11.5% at $100,000/month. You actually have to be earning something like HK$250,000/month to hit the flat tax rate of 15%.

[Beanieskis]

A friend of mine pays $11k for a 1 bed on Caine Road - it's small, but has a separate bedroom and kitchen, enough storage and space for a sofa bed for guests. Big enough for one, central, but no facilities of course at that price.